Tata Steel to cut around 1,200 jobs in Europe

London: Tata Steel yesterday announced it will cut around 1,200 jobs in Europe, with the UK being the worst hit, under a planned restructuring to deal with "flood of cheap imports" from China and other places.

The company, which will stop making steel plate at its Long Products Europe business, also blamed high power costs and a strong pound for the proposed moves.

"As a result, Tata Steel has been forced to make changes to its Long Products Europe business. The proposed changes would lead to around 1,200 job losses -– about 900 in Scunthorpe and 270 in Scotland as well as a small number at other Long Products Europe sites," it said in a statement.

The unit announced proposals to stop production of steel plate. This comes in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs, it added.

Plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed, while one of the two coke ovens at Scunthorpe steelworks would be closed, Tata Steel said.

Tata Steel Europe Head Karl Koehler said: "I realise how distressing this news will be for all those affected. We have looked at all other options before proposing these changes. We will work closely with affected employees and their trade union representatives. We will look to redeploy employees, wherever possible, and minimise employee hardship."

The consultation process with Tata Steel employees and trade union representatives begins today. The steel crisis dominated UK Parliament yesterday as Opposition Labour leader, Jeremy Corbyn, challenged British Prime Minister David Cameron to take up the issue with China during President Xi Jinping's state visit to the UK this week.